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As credit markets prepare for the FOMC announcement on Thursday, some traders said they are exhausted with speculation about the timing of a hike.
In advance of the Federal Reserve's meeting later this week, US treasury prices rose a touch in very quiet trading on Monday. Ten-year notes closed 2/32 point higher to push yields down 0.5 basis points to 2.18%.
Support likely came from weakness in US equities and a moderate selloff in commodities, said traders. But gains were limited by expectations for corporate bond issuance to increase on Tuesday and Wednesday.
The new issue corporate and financial market bond was "moderately busy", said one trader, as $4.75bn of bonds were priced on Monday. Expectations were for a total of another $15-20bn to price Tuesday and Wednesday.
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